102 Division St. P.O. Box 281 Nome, Alaska (907) Fax (907)

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1 Port Director Joy Baker Harbormaster Lucas Stotts I. ROLL CALL 102 Division St. P.O. Box 281 Nome, Alaska (907) Fax (907) AGENDA NOME PORT COMMISSION July 16, 2015 REGULAR MEETING ~ 5:30 PM COUNCIL CHAMBERS Nome Port Commission Jim West, Jr., Chairman Charlie Lean, Vice Chairman Doug Johnson Mike Sloan Iura Leahu Rolland Trowbridge, Secretary Bryant Hammond II. III. IV. APPROVAL OF AGENDA APPROVAL OF MINUTES Regular Meeting CITIZEN S COMMENTS V. COMMUNICATIONS Murkowski Efforts Promote Alaska s Ports, Harbors & Roads McDowell Group Port Development Services Mayor Michels AWSC Trip Report Mayor s Promise of the Arctic Report Updated Property Lease Summary VI. VII. VIII. CITY MANAGER REPORT HARBORMASTER REPORT Verbal Update PORT DIRECTOR REPORT/PROJECTS UPDATE Port Projects Status Report June 2015 Mid Dock Progress Report Snake River Boat Lift Concepts w/cost Estimates IX. OLD BUSINESS X. NEW BUSINESS XI. XII. XIII. IV. CITIZEN S COMMENTS COMMISSIONER COMMENTS NEXT REGULAR MEETING August 20, :30 pm - Regular Meeting ADJOURNMENT

2 MINUTES NOME PORT COMMISSION REGULAR MEETING MAY 21, 2015 The regular meeting of the Nome Port Commission was called to order at 5:30 pm by Chairman Lean in City Hall, located at 102 Division Street. ROLL CALL Members Present: Members Absent: Also Present: In the audience: Bryant Hammond; Doug Johnson; Charlie Lean; Mike Sloan; Iura Leahu; Rolland Trowbridge; Jim West (All excused) Joy Baker, Port Director; Lucas Stotts, Harbormaster; Monica Gomez, Office Manager Francesca Fenzi, KNOM; Ken Hughes, Grant Wilkins, Sandra Medearis, Nome Nugget APPROVAL OF AGENDA Commissioner Lean asked if there were any changes to the agenda. A motion was made by F. Hammond and seconded by G. Sloan to approve the agenda as presented. At the roll call: Ayes: Lean, Johnson, Hammond, SLoan Nays: Abstain: The main motion CARRIED. APPROVAL OF MINUTES Three regular meeting minutes were presented for approval. January 15, 2015 Meeting - A motion was made by Lean, seconded by Johnson to approve. At the roll call: Ayes: Johnson, Hammond, Sloan, Lean Nays: The motion CARRIED. March 19, 2015 Meeting - A motion was made by Hammond, seconded by Sloan to approve. At the roll call: Ayes: Hammond, Sloan, Lean, Johnson Nays: The motion CARRIED. MINUTES NOME PORT COMMISSION PAGE 1 REGULAR MEETING May 21, 2015

3 April 15, 2015 Meeting - A motion was made by Sloan, seconded by Hammond to approve. CITIZENS COMMENTS At the roll call: Ayes: Sloan, Lean, Johnson, Hammond Nays: Abstain: The motion CARRIED. Kenny Hughes spoke about needing to have more packets available for the public, as well as electronic access during the meetings. Hughes also stated he was interested in the Port Commission view on the dredge study and hearing the discussion on the Middle Beach Park project. Sandra Medearis also spoke on the packet availability and urges the City to provide more hard copy and electronic access for the Public. COMMUNICATIONS A. April 2015 Nome Suction Dredge Study Commissioner Hammond stated he was disappointed in the time it took to get the study published and it was not as extensive as he had hoped. Chairman Lean stated that it was bad timing and it missed the last two years of mining activity. Not impressed, but it does point out the dredging is important to the community of Nome and talks about the local participation, but it does not completely capture how many people are involved. Lucas Stotts stated that some new miners in the community found that the material was helpful for them. Joy Baker asked Kenny Hughes if the AMA was asked to comment on the study. Kenny Hughes answered no, not prior to publication, and clearly some of the data was from previous reports. Lean also stated had it been released earlier it may have been viewed as a better report and more useful. B. April 2015 USCG 2015 Arctic Ops Environmental Assessment link C CBJ NOAA Letter to AK Delegation D NOAA Fisheries Task Force Report Hammond stated that although this report focused more on Southeast and Kodiak and not on our region, the overall intent to bring research staff to Alaska for the State s fisheries is a good thing. Sloan commented that there is a need for jobs for the students that are going through the fishery program so they can work somewhere besides Seattle. Lean stated he had an extended relative onboard one of the vessels doing the hydrographic work in Alaska this summer. Johnson added that one of the main concerns is efforts to continue bringing folks in from the outside to do the fisheries work, when they are not employed within or familiar with the State. E Mayor s Report MINUTES NOME PORT COMMISSION PAGE 2 REGULAR MEETING May 21, 2015

4 Joy Baker indicated the report reflects trip notes from the Mayor s City travel. F NOAA Project Kickoff Invitation G USCG Teleconference on Proposed Dredge Vessel Inspections Joy Baker stated that the teleconference had already occurred, but provided as info to the Commission. There were some good question by the callers, but the call was shorter than what was advertised by the USCG. They basically reiterated that they will be in educational mode to ensure that the dredge fleet understood all of the new regulations prior to beginning enforcement. CITY MANAGER S REPORT None provided HARBORMASTER S REPORT Lucas Stotts stated the season is up and running. Monica Gomez has been hired for the new office manager. Believes that they have a Harbor Assistant and Dock Watch/Office Assistant lined out, just waiting for the paperwork. Phoenix Marine launched one of their jack-up barges, and all together will have three barges this season. The first gravel delivery will be sometime in early June. Being an early breakup, it will allow City crews to put the bumpers and ladders in the water in the next few weeks. PORT DIRECTOR/PROJECTS UPDATE Port Projects Status Report May 2015 Joy Baker stated that the City is again actively looking into some river development funding sources. The ADOT 50/50 Harbor grant has been made available, but only covers specific components such as floating docks, uplands development and armor stone shore protection. Ineligible components are dredging and sheet pile. The City is trying to identify an alternative funding partner for the river development, and looking into perhaps folding a travel lift component into the project. Funding constraints may require the project to be built in phases. It is possible that the state will go 50/50 on the haul-out infrastructure; we are currently awaiting an answer to that question. Lean mentioned development upstream of the bridge between there and Bering Air, and whether some of this land near their snow dump area could serve as a landing area for small vessels. This area is already deeper, but the limiting constraint will be the height of the vessels that can get under the new bridge. It would serve as good storm refuge for small craft. OLD BUSINESS There was none NEW BUSINESS Middle Beach Project Draft Plan for Review Lean mentioned they first saw this plan at the last meeting. Joy Baker stated that the draft plan was received too late to make the last meeting agenda/packet, so was included on this meeting s agenda. Lean commented that whoever put this plan together is not familiar with the weather, water and gravel that Nome has for growing this type of vegetation. Lean doesn t MINUTES NOME PORT COMMISSION PAGE 3 REGULAR MEETING May 21, 2015

5 feel that the location is compatible, but likes the idea of open area for the community. Kenny Hughes mentions that the shrubs are safe with saltwater. There are concerns and questions on who is going to maintain the restrooms, crime and also the maintenance of the facility, as well as the proximity to the summer USACE dredging discharge operations. Further concern is a negative impact to the Iditarod dog lot area. Bringing in Frisbee golf to the area is an idea the committee agrees would be good to have. CITIZENS COMMENTS Kenny Hughes mentioned dock side fueling; he has talked to NSEDC and Crowley regarding dock side fueling. Joy Baker states that discussions have occurred with both BFI and Crowley, but no one has put forth any formal plans to date. Lucas added that several conversations have taken place regarding where to place the dock side fueling station. Sandra Medearis commented that with other beaches being slated as limited or no access, the only beach remaining for the public to access for enjoyment is Middle Beach. Perhaps public restrooms and bar-b-que stands could be made available to the public for use. COMMISSIONERS COMMENTS 1) Commissioner Hammond none. 2) Commissioner Johnson none. 3) Acting Chairman Lean none. 4) Commissioner Sloan none. SCHEDULE OF NEXT MEETING The next meeting is scheduled for June 18, ADJOURNMENT A motion was made by C. Hammond and seconded by C. Sloan that the meeting be adjourned. Hearing no objections, the Nome Port Commission adjourned at 6:38 PM. APPROVED and SIGNED this 16 TH day of July, ATTEST: JIM WEST, Chairman ROLLAND TROWBRIDGE, Secretary MINUTES NOME PORT COMMISSION PAGE 4 REGULAR MEETING May 21, 2015

6 Joy Baker From: Sent: To: Cc: Subject: Denise Michels Friday, May 22, :26 AM Josie Bahnke; Joy Baker Tom Moran FW: Murkowski Efforts Promote Alaska Ports, Harbors and Roads Please provide in council packet From: Melanie Bahnke Sent: Friday, May 22, :29 AM To: VP-PD Subject: FW: Murkowski Efforts Promote Alaska Ports, Harbors and Roads FOR IMMEDIATE RELEASE Contact: Matthew Felling May 21, 2015 or Karina Petersen Murkowski Efforts Promote Alaska Ports, Harbors and Roads Senator s Committee Work Boosts State s Circulatory System WASHINGTON, D.C. Senator Lisa Murkowski today succeeded in leveraging her position on the Energy and Waters Appropriations Subcommittee to deliver resources in the 2016 funding bill that will initiate or maintain infrastructure projects in Alaska. The appropriations bill, which passed the full Senate Appropriations Committee today, will fund studies, research, port projects and energy innovations that will boost Alaska s economy. Infrastructure is the circulatory system of our state, and it sustains our commerce, our culture and simply connects Alaskans to one another and it must be a priority for our state because we are still lacking the roads, harbors and connections that states in the Lower 48 take for granted, said Murkowski. I thank my colleagues for working with me to continue to bring needed investments to our state, but also for pursuing innovative ideas with me for our state s energy projects. 1

7 Corps of Engineers Operations and Maintenance Funding: When the appropriations bill is constructed, funding amounts are debated to get the best return on investment for worthwhile projects. The 2016 bill includes: $7,928,000 for Port Lions Harbor $11,904,000 for Port of Anchorage maintenance and dredging projects $3,615,000 for Chena River Lakes $1,231,000 for Dillingham Harbor $462,000 for Homer Harbor $180,000 for inspection of completed work in Alaska o This will likely be used for the Nome Sea Wall, Dillingham Sheet Pile, Homer Spit Rock Revetment, Skagway River Levee and other projects $345,000 for Ninilchik Harbor $1,550,000 for Nome Harbor $4,000,000 for St. Paul Harbor $700,000 for project condition surveys in Alaska o This likely includes Akutan, Bethel, Kake, Dry Pass Channel and Mekoryuk Corps of Engineers General Investigations Funding: Before a shovel hits the dirt or a backhoe gets delivered, the Corps of Engineers reviews proposals for projects to make sure the most cost-effective methods are used. The 2015 funding bill includes: $535,000 for Craig Harbor $700,000 for Kotzebue Small Boat Harbor $700,000 for Perryville Harbor $700,000 for St. George Harbor Denali Commission: The Denali Commission coordinates construction and infrastructure efforts in rural Alaska. Senator Murkowski was able to provide $1 million above the President s budget to continue this important program allocating $11 million for its operations this year. Stability and Certainty for Seward tunnel: With Seward rainfall resulting in chronic floods of the Lowell Creek Tunnel, Murkowski was able to secure $2,286,000 for Lowell Creek Tunnel improvements. She also successfully locked in the Army Corps of Engineers to conduct operations and maintenance for the next five years. 2

8 (Photo courtesy City of Seward) Methane Hydrates: Nearly $20 million to further research into the production of natural gas from methane hydrates. Alaska s Arctic contains an estimated 32,600 trillion cubic feet of natural gas locked in ice crystals enough energy to power the entire nation for 1,000 years. Risk Based Data Management System: $5.2 million within the Department of Energy s Fossil Energy Research and Development budget, which will help Alaska better monitor the integrity of wells drilled by the oil and gas industry and improve transparency by publishing information about hydraulic fracturing on the website FracFocus. Weatherization Assistance Program: $190 million for weatherization assistance nationally. The program helps improve energy efficiency in rural Alaska where high energy prices take a larger percentage of household budgets. Better insulation, sealing windows and other energy efficiency tactics statewide are frequently used to keep Alaskans warm and lower energy bills. ### Note: Please do not reply to this . This mailbox is unattended. For further information, please contact Senator Murkowski s press office at or Visit our website at 3

9 June 3, 2015 Josie Bahnke, City Manager City of Nome P.O. Box 281, Nome, AK Dear Josie, We are very interested in offering our professional services in support of Nome s port development project and future Arctic development. As Commerce Commissioner, I was keenly aware of the growing awareness of opportunities and needs related to Arctic development. Having recently returned to McDowell Group, I am eager to combine that knowledge with our firm s research and consulting experience. McDowell Group has extensive experience conducting feasibility studies for public and private sector development projects, economic impact analyses, and community development plans. We are currently working for the City of Valdez on a Market Analysis and Long Range Port Planning Project. We recently completed a Marine Freight Transportation Analysis for the Port of Anchorage and an analysis of the Trends and Opportunities in Alaska s Maritime Support Sector. We offer several critical assets that contribute to the value of our research and planning efforts: We are very familiar with marine freight infrastructure, services and service providers, and volumes of freight moved through Alaska s ports. We understand the economics that have shaped today s marine freight environment. We understand the logistical and financial challenges associated with developing infrastructure and markets in coastal Alaska. Our extensive work in Alaska s seafood and mining industries is particularly valuable in this regard. Examples of our community infrastructure and economic development planning include the recently completed Juneau Economic Plan, the Valdez Community Market/Gap Analysis, and an Opportunity and Gap Analysis for Prince Rupert. We started at the ground level with Huna Totem Corporation on the development of Icy Strait Point, providing a range of services from their initial feasibility study, analysis of economic and employment impacts, customer surveys, and financial analyses for subsequent site development and infrastructure. We have many years of experience in traditional industries including oil and gas, mining, seafood, and timber, and in emerging industries both military and civilian and understand how these industries drive demand for freight services and infrastructure. We appreciate this opportunity to express our firm s interest in serving the City of Nome. Don t hesitate to contact us if you have any questions about our work supporting Alaska s communities, ports, and industries. Sincerely, Susan K. Bell McDowell Group Principal CC: Joy Baker, Port Director, City of Nome 9360 Glacier Highway, Suite 201 Juneau, Alaska Tel

10 McDowell Group Project Experience McDowell Group has served Alaska s research needs for more than 40 years, conducting approximately 2,000 studies for over 400 public and private-sector clients. We have consulting and research expertise in all of Alaska s key industries including oil and gas, mining, seafood, and tourism. Within these sectors, we have conducted feasibility studies, market assessments, benefit/cost studies, and economic impact assessments. In addition, we have extensive experience in rural infrastructure and services, particularly marine infrastructure, transportation development, and energy. The following partial list of projects illustrates our breadth of experience conducting feasibility studies and market demand/revenue analyses for public and private sector clients. MARINE INFRASTRUCTURE Kodiak Island Wide Ferry Feasibility Study Gold Creek Marina Market Demand Assessment Feasibility of a Cruise Ship Pier in Sitka Icy Strait Point Feasibility Study Demand and Revenue Assessment for a New Harbor in Saxman Southcentral Marine Transportation Analysis Tolstoi Bay Deepwater Port Feasibility Study Mt. Roberts Marina Demand Study West Douglas Deepwater Port and Marina Feasibility Study Rainforest Island Ferry Market Assessment Update Southcentral Ports Development Project Port Chilkoot Cruise Ship Dock Market Study SEAFOOD INDUSTRY Feasibility and Resource Analysis for Relocating the Home Port of the CDQ Fishing Fleet Kake Seafood Plant Feasibility Study and Business Plan Dillingham Seafood Processing Plant Feasibility Study and Business Plan Atka Pride Seafoods Plant Restructuring Plan Feasibility Study of a Nelson Lagoon Seafood Processing Plant Valdez Fisheries Development Association Regional Cold Storage Facility Business Plan Feasibility Study and Business Plan for a False Pass Seafood Processing Plant Feasibility Study for Reopening the Hydaburg Seafood Plant Business Plan and Feasibility Study for a Public Cold Storage in Wrangell PUBLIC FACILITIES Feasibility Analysis of the Alutiiq Museum Building Seward Library Museum Feasibility Analysis Feasibility Study for a Soldotna Conference Center and Visitor Center Expansion Wrangell Museum and Civic Center Needs Assessment and Economic Analysis McDowell Group Interest in Supporting the City of Nome McDowell Group, Inc. Page 2

11 Kodiak Meeting/Convention Facility Demand Assessment Haines Convention Center Feasibility Study Bethel Pool Feasibility Study Skagway Municipal Pool Feasibility Study Kettleson Library Life Cycle Cost Analysis OTHER MARKET ASSESSMENTS AND FEASIBILITY STUDIES Soboleff Cultural and Visitors Center Feasibility Study Pro Forma and Economic Impact Assessment of Blood Bank of Alaska Facility Expansion Market Assessment for the Mt. Roberts Tram Global Hawk Flight Services Market Demand Assessment KANA Child Care Center Feasibility Study Market Assessment for Dimond Center Hotel Development Alaska Veterans Home Feasibility Study Feasibility Study and Business Plan for a Kodiak Maritime Heritage Center Market Demand Assessment for a Cultural Center and Resort in Carcross Selected Staff Resumes McDowell Group offers critical knowledge of Alaska s industries and infrastructure, analytical skills, and the ability to synthesize study tasks into strategic development of opportunities and recommendations. The following resumes illustrate the array of skills and project experience that we could bring to a City of Nome project. Jim Calvin, Managing Principal Jim Calvin is a McDowell Group Principal and senior project manager. In nearly 30 years with the firm, he has authored, managed or supervised more than 500 consulting and research assignments throughout Alaska, from Kotzebue to Ketchikan, for 100 government and private sector clients. Jim s specialties include economic and socioeconomic impact analyses; cost/benefit analyses; and feasibility studies. Jim also has extensive experience with local economic development analysis and planning. He was project manager for the recently completed Juneau Economic Plan and the Valdez Community Market/Gap Analysis. Jim managed the Southcentral marine freight and fuel transportation analysis for the Port of Anchorage and a project gauging the demand for deep water dock development on the west side of Douglas Island near Juneau. His seafood industry experience includes studies of the economic impact of commercial fishing and seafood processing in local economies and numerous infrastructure studies. He also has a long professional track record in Alaska s mining industry. He has studied the socioeconomic impacts of nearly every major mine development project and operating mine in Alaska as well as the impacts of mining on Alaska s economy. Jim s formal education includes a Master of Science in mineral economics from the University of Alaska, Fairbanks. He earned his undergraduate degree from Western Washington University. McDowell Group Interest in Supporting the City of Nome McDowell Group, Inc. Page 3

12 Susan Bell, Principal Principal Susan Bell manages a wide array of McDowell Group projects including community development and planning, market demand assessments, feasibility studies for public and private investments, and public opinion research. Susan recently returned to McDowell Group after serving as Alaska Department of Commerce, Community, and Economic Development Commissioner. As Commissioner, she led state initiatives to market Alaska domestically and internationally; develop Alaska s renewable and traditional energy resources; and enhance the state s business climate. She served as State Co-Chair of the Denali Commission and as a board member for the Alaska Railroad Corporation, Alaska Energy Authority, Alaska Gasline Development Corporation, and Alaska Industrial Development and Export Authority. Susan has managed or contributed to numerous McDowell Group port and waterfront development projects including the Juneau Long Range Waterfront Plan, Icy Strait Point Feasibility Study, Jacobsen Drive Dock Economic Impact Analysis, and the Port of Prince Rupert Opportunity and Gap Analysis. She has managed public involvement for numerous public transportation projects including the North Douglas Crossing Public Involvement Study, Downtown Juneau Tourism Transportation Study, Northern Panhandle Transportation Plan, and the Sitka Access EIS Scoping process. A frequent presenter and facilitator, Susan enjoys the opportunity to engage with community and business leaders during public meetings and executive interviews. Andy Wink, Senior Analyst Andy has managed or contributed to most of McDowell Group s recent seafood, maritime, and port-related projects. His primary areas of expertise are economic impact studies, demand assessments, feasibility studies, and the Alaska seafood industry as a whole. Andy serves as the lead analyst and project manager on the Seafood Market Information Service (SMIS) contract with the Alaska Seafood Marketing Institute (ASMI). As part of the SMIS program, he maintains extensive data collections and topical analyses which support ASMI programs and industry members. Andy has led seafood projects pertaining to market analyses of sockeye, crab, and federal groundfish species (ongoing), China s secondary processing industry, economic impact analyses, market demand assessments, and processing plant business planning. He was the lead analyst on a 2011 project examining the potential for relocating CDQ vessels to Valdez. In 2013, he managed economic impact study that quantified a hatchery s impact on commercial and sport fisheries. In 2014, Mr. Wink contributed to a study of Alaska s maritime industrial support sector for the Alaska DCCED. Currently, he is managing a project for the Alaska Salmon Alliance which will document the economic impact of the seafood industry in Southcentral Alaska. Andy holds bachelor s degrees in finance and economics from the University of Wisconsin - LaCrosse. Prior to joining McDowell Group in 2010, he worked for the State of Alaska for seven years as a labor economist, seafood development specialist, and investment officer. Garrett Evridge, Research Analyst Garrett has managed or contributed to most maritime related projects conducted by McDowell Group since joining the firm in Recently he was a contributing analyst on a number of projects including analyses conducted on the Port of Anchorage, Port of Tacoma, and Port of Seattle. He is currently working on a report for the Alaska Salmon Alliance detailing the economic impact of the seafood industry on Southcentral Alaska, including Valdez, Cordova, Anchorage, and other communities in the region. In 2014 Garrett managed a McDowell Group Interest in Supporting the City of Nome McDowell Group, Inc. Page 4

13 project titled Trends and Opportunities in the Alaska Maritime Industrial Support Sector conducted for the Alaska DCCED. The project identified maritime infrastructure and maritime support business in 21 Alaska communities, including Valdez. Factors impacting Alaska s maritime sector were explored and strategies were identified to strengthen the industry. Garrett has participated in a number of economic impact studies of Alaska hatcheries, including a 2013 report on the VFDA hatchery. He also supports work conducted for ASMI. A lifelong Alaskan from Kodiak, Garrett has been active in commercial fishing all over the state. He holds a bachelor s degree in economics and is completing his master s in applied economics from the University of Alaska Fairbanks. McDowell Group Interest in Supporting the City of Nome McDowell Group, Inc. Page 5

14 i To: City Council/Kawerak From: Denise Michels, M opd Subject: Arctic Waters Safety Committee Date: 6/9/15 Kawerak paid for airfare and hotel. Cc I SL W Sunday 6/8: The AMMA met at I to 430 at the Marriot in ANC discussion on the Bering Strait PARS comments. The draft is what we agreed upon ie voluntary measures, areas to be avoided, speed, restrictions, no dumping of waste. We recommend that they send the comments in. The deadline was June 3 and there was one posted to July so there is a discrepancy. Reviewed AWSC meeting agenda. The AMMA decided to meet in DC in late October. AMMC meeting in Juneau during the legislature and at the same time as the AWSC. I made a recommendation if P&P are being difficult to create to look at the NPFMC s hand book for the public. 6/9 the AWSC meeting started at 8:15 in the Dena ina Center. Introduction of attendees. Lt. Chung went over the issue that there are foreign research vessels conducting work for the NSF and government vessels are not required to comply with NEPA. One of these vessels are going to be 8 miles off the coast of Barrow and there was no consultation with the community and they have concerns that they ll be there at the same time as the fall whaling season. The committee recommends that we ask that there be standards of care, that the NSF conduct community consultation. Oil and gas has to comply with NEPA and have a plan in place for environmental response. Captain Bornemann will go over it later this afternoon. The APC regulations don t allow the public to comment on the plan the USCG goes thru a thorough review before they made a decision, a non profit has to disclose all financial data, the private company doesn t. Captain John Veentjer went over the Puget Sound Harbor Safety Committee and how it works and was created. the Marine Exchange of Puget sounds manages the HSC. There are various standards already in place. Martin Robarts went over the Arctic Waters Safety Plan draft. Martin went over the history of the AWSC and the work the AMMA played in that creation. Discussed the IMO polar code and mentions subsistence hunters in the Arctic. Yukon and Bristol Bay are looking at the creation of their own. Accredited providers in APC network. He did a great job. Infrastructure will be added. Bob Poe with the Marine Pilotage. Local knowledge is safe for docking vessels. The pilots have 3 areas. Southeast, Southwest, Western Alaska. Nothing in the law requires that there be only I pilot in the region. There is a marine pilotage board. Driving foreign flagged over 60 and US ships over 300GT not a tow boat. Marine pilot have to attend maritime academy, merchant marine or was in the USCG. Draw charts to get local knowledge. Qualification takes about 3 years. They work closely with the Marine Exchange of Alaska. Russia has been shipping oil all this past winter. Port Parameters committee looks at issues about charting, Aids to Navigation issue contact the USCG and port managers and port operations. When a ship is in distress, so marine pilots work with shell and get anchors and establish a single point mooring system. Towing system in Dutch that makes it safer. They work with AVTEC to create a marine simulator. They don t actually drive t, they instruct the bridge team to come into port.

15 International traffic going thru the Bering Strait and are aware of those ships. More info we share the safer we will be. We did away with the Coastal Zone Management Program. This committee makes up that absence for it. Current practices in lightening Jim Dwight Bowhead and Greg Pavellas Crowley. Crowley created the first double hulled fuel barge and tug. Its a big part of Crowley s own standards and not required standard by law or regulations. Oil company marine forum suggest horse power to tunnage to wires. Specification on petroleum products and distribution. Safety Management System for continual improvement. Responsible carrier program. ISO/ISM and Chadoux is their OSRO. Mariner are highly prized, train and train and train. Oil transfer procedures, etc. ADEC c plan. They voluntary work with the CAA with the whaling commission. Bowhead and Crowley created a UIC joint venture. Went over their operations. Operating in the Arctic for over 30 years successfully. They explained their operations and strive for excellence for transportation of goods and fuel products. Winds and weather is changing. Committee requirement is reporting the erosion where they stop for information and environmental and economics of not getting there. We review the coast pilot sections on MM subsistence hunting. Jessica recommended that the committee could form a science subcommittee to bring the researchers together since consultation with NOAA and NSF chaired by Martin Robarts. Drafting working groups on technical sections. Subsistence committee by Harry Brower. Call and communication provisions as they move along the coast. The conflict avoidance agreement was brought forth. 1.6K is a long distance to see marine mammals. Marine Marine Mammals observers on research vessels possible? Lt. Tim Smith of NOAA office of coastal survey. Water levels around the state. Survey entrance channels. They are surveying where hazards for commerce. 10 hour about 50 miles. May take 2 years to finish Kotzebue. NOAA and USCG will survey the PARS. NOAA should have consultation with the communities. TerraSond will be doing Wales. Community outreach. They keep track of the subsistence hunting. Native liaison is in DC, its up the Lt. Smith. Amy Holmann possible of having subsistence hunters on the vessels is being talked about. Qualification of how to be on the ship. Majority of native hunters are trained. Union issues. Having a posted monitored and maintained contact number that can communicate with the ships via . The AMMA requested this 3 years ago. Typical transit speed 13 Knots of surveying at 3 to 8 knots. Public Comments from 315 to 415: There were no public comments. USCG Overview of the Alternative Planning Criteria and Related USCG processes.captain Bornamann. D17 Non-tank vessel APC Guidance. Alternative for vessels bound from US port need a response plan with geographic specific appendix. How to deal with oil spill, communications, and which oil spill clean up company you will use. We don t have this in Alaska so the APC fills in that gap. Non tank under new OSRO classification site in Alaska in New NTV regs in effect in 2013 are in effect now. Close to finalize guidance by end June/July put it on a public share point for public comments. Pass to USCG HQ. The Network has the APC for all western Alaska. The Aleutian was approved in APC is the regulation for non tank vessels published in 2013, guidance and check list will have a public comment opportunity.

16 Response and prevention how are they rated? The USCG looks at it holistically, is it include mitigation, response and prevention. When there are competing how will the USCG rate it? Nome OSRO gap 110 NM. There are huge gaps in western alaska. We need to make complete coverage and that s what were working towards. Chadaux has an airplane waiver. APC will collect fees that transit through there area? The money will go the subarea plan planning committees look at this funding, where is my highest risk. OSRO and APC s are two separate issues. Next meeting late October and November for the next meeting again in Juneau at February. We meet will meet tomorrow at 8:30. 6/9 Executive Committee Meeting The discussion of the Waterway Safety Plan on lightering areas to be avoided, near sown routing, vessel speeds. The scientific committee will take this issue on. Paul and I will open up to Infrastructure committee. Research vessels with best practices will be exempt from NEPA. Martin will create draft policies for standards of care. Bowhead and Crowley are the representatives on the Industry for Tug and Barge. We ll hear presentation on tourism. We created a process for contacts of each region for disbursing information. Since we meet in October, how will we provide comments internal process and procedures. The learning curve for each subject varies, we have experts and new corners. Martin reminded us that we are looking at standards of care and advocating or making comments. comments for review and have the executive committee approve to. Hector is making a recommendation to have the committee comment on the APC as an opportunity to address our concerns with pollution, subsistence and the ability for the USCG to act. Many of us didn t feel that the AWSC is the plac Standards of care are what we should be addressing to formulate a position that is not already in place. These next 2 days were fund raising for Kawerak s FFE and we met with the following: 6/10: Alaska Airlines with Tim Thompson, Public Affairs Manager and Marilyn Romono, Regional Vice President. Kendall Gee with Dowl and?. Dowl is very familiar with the project. Jenny Evans & Chris brown with AT&T. David Morris, VP Corp. Comms; Martin Cary VP & GM Managed broadband; Paul Landes, SVP & GM Consumer Services; Greg Pearce VP & GM Commercial Services and Bob Walsh.

17 That night we hosted a reception at Mrs. Alice Rogoff s home with Gail Scheubert BSNC, Mattox Metcalf, Kawerak and the City of Nome. We raised $18,000 for Kawerak s FFE. Friday we met with Boyuck and Lee Ryan. Jeff Jessee with the Alaska Mental Health Trust. Our meeting with Crowley fell through. I checked in at 3 and departed at 445. While in OTZ we were on weather hold for fog in Nome and then the wind changed directions in OTZ and we had to unload 1 pax and 800# of baggages so we could take off. We arrived at 9pm.

18 AGENDA ARCTIC MARINE MAMMAL COALITION MEMBERS AND OBSERVERS Downtown Marriott, Juneau Room Anchorage, Alaska Sunday, June 7, :00-5:00 pm 1:00 Call to Order - Willie Goodwin, AWSC Chair 1:00 1:05 1:05 1:15 1:15 2:00 2:00 2:45 2:45 3:00 3:00 3:30 3:30 4:00 4:00 4:15 4:15 4:30 4:30 5:00 5:00 Invocation Roll Call & Adoption of Agend Review Draft Comments on the U.S. Coast Guard s Port Route Study Review Materials for Monday AWSC Meeting Break Meeting Topics for Fall Travel to Washington, D.C Meeting Topics for Spring AMMC Meeting in Juneau / Old Business New Business Member Concerns Adjourn I

19 P.O. Box 92326, Anchorage, AK I sector. The nomination is made to the Committee and the Committee approves. While there is no limit to who turns up at the meeting, only one representative for each group will have a leave. They decided to post an opening announcement online and in the media. To Here we summarize how representatives of stakeholder groups on the Puget Sound Harbor is the model for the Arctic Waterways seat at the table and be given a vote. asked the Passenger Vessel Association to assist with this choice. their representative and alternate. As much as possible, the decision is made within each Safety Committee (PSHSC) are established Safety Committee. Stakeholder groups can find whatever process works for them to assign Here are a few examples of how groups at the Puget Sound choose their representatives: PSHSC did have a representative from the Environmental segment until four or five years ago. Someone eventually volunteered and the PSHSC accepted them. More from the tanker industry. The Public at Large seat became available as a longstanding representative chose to recently, that person recommended a replacement and also identified for us an alternative. their surprise, they had two outstanding candidates apply for the seat and ultimately placed them as primary and alternate. The towing industry seat had a primary, but no alternate. They asked American approved the choice. The representative of the passenger vessel (excursion vessels) seat wasn t showing up decided who would be the primary and who would be the alternate. We had in the past For the fishing vessel segment, they went to the North Pacific Fishing Vessel Owners to meetings. After discussion with him and others who were attending, that sector Waterways Operators (AWO) to help identify the alternate and did so. The Committee Association (NPFVOA) to make a recommendation. For years, the Executive Director Executive Director found another primary and then took the alternate seat. Western States Petroleum Association represents the oil industry and alternates come for NPFVOA was the representative and also the Vice Chair. After retiring, the new this Arctic Waterways Safety Committee Establishing Stakeholder Representatives SAFETY COMMTTEE

20 (V ).P-QL 1cviks ts.ccc2,..jx ARCTIC WATERWAYS SAFElY COMMITTEE -9\ PE AGENDA ARCTIC WATERWAY SAFETY COMMITTEE PUBLIC MEETING Dena ina Center, K enakatnu Board Room Anchorage, Alaska (r Monday, June 8, :30 Call to Order - Willie Goodwin, AWSC Chairman 8:30 8:35 Invocation 8:35 8:45 Roll Call & Adoption of Agenda 8:45 9:00 9:00 9:15 9:15 10:15 10:15 10:30 Introductions & Confirmation of St keh Ider Reprent Presentation and Discussion on Formation and Function of Harbor/Waterways Safety Committees - John Veentjer, Puget Sound Harbor Safety Committee(Yl (L 41 Break t 10:30 11:00 Review Draft Elerents of an Arctic Waterways Safety Plan - tvfl Martin Robards 11:00 11:30 The Role of Alaska Marine Pilots and Aids to Navigation in Arctic Waters - Bob Poe for Jay Boyer 11:30 12:15 Current Practices in Lightering in Arctic Waters - Jim Dwight, Bowhead Transportation; Greg Pavellas, Crowley Chukchi Sea Beaufort Sea L. IiO1 / tl \ Co,ka

21 5:15 ARCTIC WATERWAYS Ery COM1TE. 12:15 1:30 1:30 2:00 2:00 2:30 2:30 3:00 Lunch (on your own) Review Coast Pilot Sections on Marine Mammal Subsistence Hunting Review Traffic Management Provisions of the Open Water Season Conflict Avoidance Agreement Proposed Bathymetric Surveys for the Bering Strait and Northern Waters - Timothy M. Smith, NOAA 3:00 3:15 4:15 3:15 4:15 5:00 Break Public Comments Comments from U.S. Coast Guard and Overview of Alternative Planning Criteria and Related Coast Guard Decion Processes V 5:00 Time and Place of Next Meeting 5:15 5:00 Closing Remarks 5:00 Adjourn cj

22 / 06/08/2015 Sector Anchorage LT Eugene Chung Chief of Waterways Management Divisiqn R/V Mirai Arctic Ocean cruise in Sep-Oct., re to de0000 Sn00 ISV tosror) bsorrgrngroi pan l5enoy for M4-rnO-EartV S000r2 arc ;rrnlfly fiamstec) not corded tr4-ngr rroorrnhnngeon)renrae4l and rnotenrdoto4lrcraeyfl 0 the Oct00 rot err 0 nepterrber to eartyrd0000e.. The nbodr.tcf 105 CurOe rio 00000tYofl-gOlnB0hOrBBS.n r eoeaoioaaaarrnt onto atn000000n onrd0000ptnm cnloccarnrolarnd lathe recent 0n w tiring and sea,tnro.000ttor rrronnsusonncoloc,tarirrronsigof000/ocrop,crn Iu.O-knco Cod mtnosrrr2000ce mn000rnro nt, dnftrr5 hooj Ooalny-,Ofltn. Oporo nej.nr.nno. watnrenmptlnp. o Cl carphngr.4lrs-hroroioneon 0110cr srntonnfaro. rarsroincdrt0rnont00o0oo0lninrr, ntrlnand l000graohy,4-aoiiy. not reor5rielro 1511 mea or0010nto, and rngatoodrmSro003p r000000ns& dnploynrnntn ErhrnaIed darn the Rfl Ideal aol alice at rho Barrow 04 Cnryocencwnthlorhaarea.eln teorornds.5&sepernhen err m n I now - lasor00041oeodwcroo j4 10 n5 eaoe.41neathsnln.c 1

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24 06/08/2015 A!1iRN,Tl EPLANNINGCRIT[RIA PACIFIC HARMONY Origin: kobe. Japan Oestination:Vannnuver,Canada Tom: Bolk Crrrinr Oroner: Onto Stnnnrrhip Cnrrrpnny Lirrrped Stotr PC OpPrating Procedure Devintion $pned: 13.1 knntc Case Example - I N : ± Important Elements of an Alternate Planning Criteria - Close coordination willie Coast Guard for communication & compliance - Response Capability - Prevention Capability - Future Growth & Sustainablilty 3

25 2015 OPEN WATER SEASON PROGRAMMATIC CONFLICT AVOIDANCE AGREEMENT BETWEEN BP EXPLORATION (ALASKA), INC. ENI US OPERATING CO INC. EXXON MOBIL CORPORATION GX TECHNOLOGY CORP. (ION GEOPHYSICAL) CAELUS ENERGY ALASKA, LLC. SAExploration SHELL OFFSHORE, INC TGS-NOPEC Geophysical Company HILCORP ENERGY COMPANY AND THE ALASKA ESKIMO WHALING COMMISSION THE BARROW WHALING CAPTAINS ASSOCIATION THE GAMBELL WHALING CAPTAINS ASSOCIATION THE KAKTOVIK WHALING CAPTAINS ASSOCIATION THE KIVALINA WHALING CAPTAINS ASSOCIATION THE LITTLE DIOMEDE WHALING CAPTAINS ASSOCIATION THE NUIQSUT WHALING CAPTAINS ASSOCIATION THE PT. HOPE WHALING CAPTAINS ASSOCIATION THE PT. LAY WHALING CAPTAINS ASSOCIATION THE SAVOONGA WHALING CAPTAINS ASSOCIATION THE WAINWRIGHT WHALING CAPTAINS ASSOCIATION THE WALES WHALING CAPTAINS ASSOCIATION

26 TITLE III BARGE AND TRANSIT VESSEL OPERATIONS SECTION 301. IN GENERAL. A Participant may employ barges or transit to transport materials through the Beaufort or Chukchi during the term of this Agreement. Any Industry Participant who employs a barge or transit to transport materials through the Beaufort or Chukchi during the term of this Agreement shall require the barge or transit operator to comply with Sections 201, 205(b) and 302 of this Agreement while providing services to that Industry Participant. Sea Sea vessel Sea Sea vessels vessel SECTION 302. BARGE AND TRANSIT VESSEL OPERATIONS. (a) Reporting Positions industry Participants. for Barge or Transit Vessels Owned or Operated by (1) All barge, transit, or cable laying shall report to the appropriate Corn-Center at least once every six hours commencing with a call at approximately 06:00 hours. Each call shall report the following information: vessels (A) Barge, transit, or cable laying name, operator of vessel, charterer or owner of vessel, and the project or entity the is transporting materials for. vessel vessel (B) Barge, transit, or cable laying vessel location, speed, and direction. (C) Plans for barge, transit, or cable laying the time of the call and the time of the next call. The final call of the day shall include a of the barge or transit vessel s general area of expected operations for the following day, if known at that time. statement vessel movement between EXAMPLE: This is the Arctic Endeavor, operated by for in the Chukchi We are currently at north west, proceeding SE at knots. We will proceed on this course for hours and will report location and direction at that time. Sea. (2) The appropriate Corn-Center also shall be notified if there is any significant in plans, such an unannounced start-up of operations or significant deviations from announced course, and such Corn-Center shall notify all whalers of such A call to the appropriate Corn-Center shall be made regarding any unsafe or unanticipated ice conditions. change changes. as

27 (b) Operator Duties. All barge or transit vessel operators are responsible for the following requirements. (1) Monitoring VHF Channel 16. All barge and transit vessel operators shall monitor marine VHF Channel 16 at all times. (2) Avoidance of Whale Hunting Crews and Areas. It is the responsibility of each Industry Participant and barge or transit vessel operator to determine the positions of their barge or transit vessels and to exercise due care in avoiding any areas where subsistence whale hunting is active. (3) Vessel-to-Vessel Communication. After any barge or transit vessel owned or operated by any Industry Participant has been informed of or has determined the location of subsistence whale hunting boats in its vicinity, the Marine Mammal Observer I Inupiat Communicator shall contact those boats in order to coordinate movement and take necessary avoidance precautions. (c) Routing Barge and Transit Vessels. (1) All barge or transit vessel routes shall be planned so as to minimize any potential conflict with bowhead whales or subsistence whaling activities. All barges and transit vessels shall avoid areas of active or anticipated whaling activity, as reported pursuant to Section 202. (2) Beaufort Sea. Vessels transiting east of Bullen Point to the Canadian border should remain at least five (5) miles offshore during transit along the coast, provided ice and sea conditions allow. (3) Chukchi Sea. Vessels should remain as far offshore as weather and ice conditions allow, and at all times at least five (5) miles offshore during transit. (4) Safe Harbor! Loitering. Notwithstanding paragraphs 2 and 3, from August 31 to October 31 vessels in the Chukchi Sea or Beaufort Sea shall remain at least 20 miles offshore of the coast of Alaska from Icy Cape in the Chukchi Sea to Pitt Point on the east side of Smith Bay in the Beaufort Sea whether in transit or engaging in activities in support of oil and gas operations, unless ice conditions or an emergency that threatens the safety of the vessel or crew prevents compliance with this requirement. This paragraph shall not apply to vessels actively engaged in transit to or from a coastal community to conduct crew changes or logistical support operations.

28 (d) Vessel Speeds. Barge and transit shall be operated at to no physical contact with whales occurs, and to make any other potential conflicts with bowhead whales or whalers unlikely. Vessel shall be less than 10 knots in the proximity of feeding whales or whale aggregations. ensure vessels speeds necessary speeds (e) Vessels Operating in Proximity of Bowhead Whales. If any barge or transit inadvertently kilometers (1 mile) of observed bowhead whales, except when providing emergency to whalers or in other emergency situations, the vessel operator will take precautions to avoid potential interaction with the bowhead whales by taking one or more of the following actions, appropriate: assistance reasonable vessel approaches within 1.6 as (1) reducing vessel speed to less than 5 knots within 900 feet of the whale(s); (2) steering around the whale(s) if possible; (3) operating the in such a way to avoid separating members of a group of whales from other members of the group; vessel(s) as (4) operating the vessel(s) to avoid causing a whale to make multiple in direction; and changes (5) checking the waters immediately adjacent to the vessel(s) to no whales will be injured when the propellers are engaged. ensure that (f) Marine Mammal Sighting Data. vessel data. Industry Participants whose operations are limited exclusively to barge or traffic will submit to the AEWC and NSB DWM all marine mammal sighting ********

29 SECTION 501. GENERAL PROVISIONS FOR AVOIDING INTERFERENCE WITH BOWHEAD WHALES OR SUBSISTENCE WHALE HUNTING ACTIVITIES. (a) Routing Vessels and Aircraft. (1) All vessel and aircraft routes shall be planned so as to minimize any potential conflict with bowhead whales or bowhead subsistence whaling activities. All vessels shall avoid areas of active or anticipated whaling activity (as reported pursuant to Section 202). (2) Beaufort Sea. Vessels transiting east of Bullen Point to the Canadian border should remain at least five (5) miles offshore during transit along the coast, provided ice and sea conditions allow. (3) Chukchi Sea. Vessels should remain as far offshore as weather and ice conditions allow, and at least five (5) miles offshore during transit. (4) Safe Harbor I Loitering. Notwithstanding paragraphs 2 and 3, from August 31 to October 31 vessels in the Chukchi Sea or Beaufort Sea shall remain at least 20 miles offshore of the coast of Alaska from Icy Cape in the Chukchi Sea to Pitt Point on the east side of Smith Bay in the Beaufort Sea whether in transit or engaging in activities in support of oil and gas operations unless ice conditions or an emergency that threatens the safety of the vessel or crew prevents compliance with this requirement. This paragraph shalt not apply to vessels actively engaged in transit to or from a coastal community to conduct crew changes or logistical support operations. (b) Aircraft Altitude Floor and Flight Path. (1) AIRCRAFT SHALL NOT OPERATE BELOW 1500 FEET unless the aircraft is engaged in marine mammal monitoring, approaching, landing or taking off, or unless engaged in providing assistance to a whaler or in poor weather (low ceilings) or any other emergency situations. Aircraft engaged in marine mammal monitoring shall not operate below 1500 feet in areas of active whaling; such areas to be identified through communications with the Corn-Centers. (2) Except for airplanes engaged in marine mammal monitoring, aircraft shall use a flight path that keeps the aircraft at least five (5) miles inland until the aircraft is directly south of its offshore destination, then at that point it shalt fly directly north to its destination.

30 (C) Vessel Speeds. Vessels shall be operated at to no physical contact with whales occurs, and to make any other potential conflicts with bowhead whales or whalers unlikely. Vessel shall be less than 10 knots in the proximity of feeding whales or whale aggregations. speeds necessary speeds ensure (d) Vessels Operating in Proximity of Bowhead Whales. If any inadvertently observed bowhead whales, except when providing emergency whalers or in other emergency situations, the vessel operator will take precautions to avoid potential interaction with the bowhead whales by taking one or more of the following actions, appropriate: reasonable vessel approaches within 1.6 kilometers (1 mile) of as assistance to (1) reducing whale(s); vessel speed to less than 5 knots within 900 feet of the (2) steering around the whale(s) if possible; (3) operating the vessel(s) in such a way to avoid separating members of a group of whales from other members of the group; (4) operating the vessel(s) to avoid causing a whale to make multiple in direction; and changes as (5) checking the waters immediately to the vessel(s) to that no whales will be injured when the propellers are adjacent engaged. ensure ******** SECTION 505. TERMINATION OF OPERATIONS AND TRANSIT THROUGH THE BERING STRAIT. Except provided in Title VI, all Industry Participant shall complete operations in time to allow such to complete transit through the Bering Strait to a point south of 59 North latitude no later than November 15, Any Industry Participant that encounters weather or ice that will prevent compliance with the in the preceding shall coordinate its transit through the Bering Strait to a point south of 59 North latitude with the appropriate Corn-Centers listed in Section 203. All Industry Participant shall, weather and ice permitting, transit of St. Lawrence Island and no closer than 10 miles from the shore of St. Lawrence Island. as degrees vessel date vessels east sentence degrees vessels vessels

31 CHAIRMAN S REPORT ATTACHMENT 4 07 JUL 2013 U.S. Coast Pilot 9, Chapter (417.01) Chart St. Lawrence Island is in the N part of the Bering Sea about 120 miles S of Bering Strait. The E end of this island is usually made by vessels bound into Norton Sound, and in clear weather can be seen from a distance of 30 to 35 miles. From South- east Cape a ridge of mountains extends in a N direction across the island, and another ridge extends in a N direc- tion from Apavawook Cape to Northeast Cape. Between these two ridges a deep bight makes in from 5, and at its head very low land extends N across the island. The shore of the E end of the island is generally a low sand beach with outlying rocks; the mountain ridges begin 0.5 to 2 miles back from the beach. 07 JUL 2013 U.S. Coast Pilot 9, Chapter (450.01) Presence of Native Subsistence Hunting and Fishing Vessels (450.02) Small, hand propelled or outboard powered yes- sels are used by native subsistence hunters during the months of May to June and September to October in the waters west and north of the St. Lawrence Island as far as 30 miles offshore. Mariners should maintain a sharp lookout for small vessels and exercise caution when operating in the vicinity of these small vessels. A wide, closest point of approach is requested by the subsistence individuals in this area. 446 U.S. Coast Pilot 9, Chapter 9 07 JUL 2013 Ice Unless there is an unusually late spring, the ice begins to break in Bering Strait and Kotzebue Sound by early June. Heavy drift ice from Kotzebue Sound is often found between Cape Blossom and Point Hope in late June. At Point Hope and Cape Lisburne, the pack ice breaks off from the shore ice in May and moves off and closes in again with changing winds, gradually work- ing off to the N and W. Young ice forms in the spaces thus left but gradually gets thinner until it disappears in June.

32 was out of sight from the land. From Cape Beaufort to Point Barrow the pack moves gradually N, clearing from point to point. A shift of the wind to W brings the pack in on shore when a few hours before it September to October in the areas of the Chukchi and Beaufort Seas. Mariners are heaviest concentrations of whales present during the months of May to June and (25.05) The Bering Strait region is a major transit area for bowhead whales with the Presence of Whales ****** during the first week of October, and then the ice is in for the win- ter. The pack shuts this time the pack has moved close to shore. The young ice makes out to the pack down on Icy Cape the first week in November, and after that time there is no open water (25.04) by the end of the month it forms in open water and makes rapidly along the beach. By via their AIS including cargo, destination and vessel type is updated and ac- curate. Freezeup normally begins at Kotzebue in late Octo- ber, and a southbound vessel recommended safety measures. Mariners should ensure that all information broadcast should try to clear Bering Strait by early November. between Point Barrow and Icy Cape except when the flaw opens. mid-august. The prevailing winds are NE and soon bring the pack down to the E of inshore from its edge. The current along the W shore of Alaska sets NE from Point pack ice moves offshore it does not go very far, and the shore and drift ice extend well middle of August, or perhaps all summer. In exceptional seasons the pack remains on Point Barrow. When this ice movement corn- mences vessels proceed to the W of the Barrow; the movements of the ice to the E of Point Barrow are due entirely to the winds. currents near Point Barrow will tend to carry vessels, which are beset, farther into the the point the year-round. E of Point Barrow, ice conditions are very uncertain. When the (23) point. ice mass. The shore ice leaves the beach late in July but remains in sight until the 07 JUL 2013 U.S. Coast Pilot 9, Chapter prevailing N and heavily jammed together, may be expected. Mariners are cautioned that the movement and continues to do so until it is out of sight. The movement of the pack, on and off, contin- ues well into July, after which time heavily massed floe ice, much broken CHAIRMAN S REPORT ATTACHMENT 4 At Point Barrow, the pack breaks off from the flaw or shore ice in the spring and moves off and on until June. When the pack moves off in June, it begins to take a NW In the fall, young ice forms earlier to the E than to the W and can be seen as early as At Point Barrow young ice begins to form around heavy ice about mid-september and

33 CHAIRMAN S REPORT ATTACHMENT 4 requested to maintain a sharp lookout for whales, reduce speed of their vessels when in the vicinity of whales and maneuver to avoid striking whales. (25.06) Presence of Native Subsistence Hunting and Fishing Vessels (25.07) Small, hand propelled or outboard powered yes- sels are used by native subsistence hunters during the months of May to June and September to October in the waters north of the Bering Strait as far as 30 miles offshore. Mariners should maintain a sharp lookout for small vessels and exercise caution when operating in the vicinity of these small vessels. A wide, closest point of approach is requested by the subsistence individuals in this area.

34 To: City Council/Port Commission/Kawerak From: Denise Michels, Mayor/KTPD Subject: Promise of the Arctic Trip Report 2015 Date: 6/17/15 We were honored to be asked to present at the 2nd Promise of the Arctic to promote the Port of Nome for the Arctic Deep Draft Port for the global community. Its our number federal priority and a national security issue. Opening by Peter Phillips, thanked the sponsors, mention that Seattle/Pudget Sound has long shipping history with Alaska since the gold rush days. Sen. Murkowski video challenges and opportunities, mentioned infrastructure. Federal legislative policy to build up commerce in the Arctic: need for infrastructure for deep water and Nome was identified as the first port. Nav Aids and charting is needed and moving measures through appropriations process. Need for ice breaker $1B cost. Challenge is imperative. Northern sea route, national security aspect for a deep water port, opening a brand new border are not manned by border patrol. Safety obligation. Build up S&R capacity. Military capacity. Environmental interest in the Arctic. Should be setting the bar for environmental standards. The other 7 arctic nations are moving and exploring. We need to give that same level of promise to the US Arctic. There is a balance that we find to use the arctic in a safe way and allow the people who live there the benefits. UNCLOS must move to ratify, we need to be at the table. Claim areas of the EEZ unless we are partner to the treaty. She mentioned the USACE/DOTPF identified Nome in the TSP for an Arctic Deep Draft Port. Current and planned projects: Nils Andreassen moderated. Mentioned the Arctic Policy Commission's policy and strategic economic resource development. Bellingham didn't really agree with his comments. We develop to support our communities. Our people demand progress. 2 years we focused on green lights that development is coming. Josh Kindred, AOGA-Facts: why we should care USGS 27 bbo and 132 tcf gas offshore. NPRA 396 mbo 553 tcf gas. ANWAR 10 bbo and 3.5 tcf gas. Jobs 35K in Alaska arctic infrastructure development and security and response capacity boost economy. USSR and Canada will develop regardless of what we do. We need to encourage and foster our own development. The out years project for oil production is going down. Its 15 and 20 years down the road for development. Won't happen tomorrow. TAPS throughput is down to 400K barrels. History 35 wells drilled since 1970 with no incident. Theresa Imm NS development: Mapped out oil and gas, natural gas,coal and minerals in Brooks range. Mentioned pan asian countries (Japan, Korea). Russia is looking at the Chukchi. Shell will use Wainwright as one of their bases with little infrastructure which is a huge challenge. Human and environmental, lack of fiber optics, infrastructure is driven by resource projects, burdensome regulations, engo litigation. Went over Point Lay development for a port. Nils: Russia has made the Arctic a priority and investments as other countries, but the US is lagging. Rick Van Nieuwenhuyse: Copper (element 29) all power, transmission requires copper and green energy requires copper. Google uses world energy. 10 Kilo of copper per year. China is 5K. As they develop they will consume more. One car in 2 people, in china 1 for every # of copper in atypical car. An electric car uses 150#. Solar, wind will need copper. 1 ton = 1MW; wind 5 tons, off shore wind 10. TESLA house batter, buy cheap energy at night and run off the battery during. Recyclable. NovaCopper in safe, rule of law, Alaska Native partner-ambler

35 mining district. Mining activities have improved lives in the NANA region. Nana to receive net smelter royalty (1 to 2.5%). 5 b# copper, zinc. Feasibility study open min, 5500 ' off the top, provide 450 jobs, average salary 100K. Mine site 2 square miles. Will include airstrip and a 10 mile road, AIDEA is developing the road. Will charge toll to pay back capital costs to AIDEA. 200 mile road connect to Dalton HWY, rail connector to FAI 240 miles, rail to port mackenzie 350 miles, its a year around port. Has $23M in the bank and is going through the environmental process. Copper, copper, copper! Matt Ganley-Port development in Bering Straits-Strategic located all traffic will go through our waters. Rare earth metals, gold and tin. Rare earth minerals are not huge to ship. Vessel traffic through the strait. 15 meter depth is the average. Deep harbor -35'. Used since 1850's. Tract 2 and 5 BSNC, tract 6 State, tract 1,3, 4 USCG. BSNC and Crowley commissioned EFA with Northern Economic and build out with Reid-Middleton. This is the first time presenting this study to the public. Economic driver, need O&G industry is the driver and mining will be developed. Expansion of the runway, deep water dock with dredged material. with future land development. No USCG infrastructure for the next 10 years. Demand progress with understand that progress in sustainable and healthy communities. Split opinions on development in the region. Working with Shell for observers. Hire locally. Safety and development for the people of the region. People of Brevig and Teller have reservation of development to harm marine mammals. Q&A: Resource extractor and exporters relationship. 600KT copper, work with AIDEA to water. This 30% copper and 50% zinc to Asia, Japan, Korea. Same distance from Red Dog to Dalton hwy, there are Parks and reserves that will be challenging to get to Red Dog. 200KT of fuel, freight. Matt- 24 to 30 mile from the Highway to Port Clarence. Graphite will be trucked to Nome 6. Lost River tin will be the driver for BSNC's port. Theresa: NSB is in process of forming a port authority to address needs and resources development point of view. Lack of roads in the area for the coal resources. Copper river and other rivers produce the greatest salmon runs. Climate change were seeing the changes of coastal erosion and other issues. International attention with climate change. Current legislation: Arctic Council will dominate, Commandant Papp at the help. IMO Solas and MARPO and Polar Code. Crystal Serendy, Seward, Kodiak, Nome to New York. Vessel safety and S&R and pollution response capacity. Domestic regulatory: Budgets dominate federal and state of AK. USCG appropriation lost $300M, reduced personnel by 4000 billets. Pulled west ward for fishing, south for organized crime and now into the Arctic and cyber security when their budget and personnel have decrease. Regulatory backlog non tank response planning, firefighting requirements, subchapter M for towing vessel inspection. Obama executive orders or presidential directives and strategy documents. Not regulatory dictated by agencies and implementation plans. Not same effect as legislation. Serial litigation new regulatory initiatives engo tax is the new word. Economic allure of arctic, lease sale 2.1B oil $120 a barrel, 1/2 that now. Economic climate has changed. Fisheries in Northern Regions moratorium in US north of Bering Strait by NPFMC and codified by secretary commerce, arctic 5 states by declaration by own vessels in central ocean beyond 200 EEZ until fishing management in place. Fishery scientist until prey fish move into the region commercial fishing will be delayed. DEC Kristen Ryan-Spill response and prevention. Plans, community engagement, need state undertaking and research needs. OSRO responsibility is mapped out. Community spill response, towing package in Nome, Kotebue has community spill agreement with DEC. Integrated response, unified plan (state/fed), sub area contingency plan by region, borough emergency plan, local emergency response plan, industry planning.

36 Subarea plans work with communities, industry, logistic, operations, sensitive areas work groups. NW Arctic Plan is being updated now will be back in September (Let Mimi/Josie know), draft plan out for public comment. OCS areas will affect the seas. Geographic response strategies, explain to put boom, deploy boats, etc., Near short to protect states shore is doable in Valdez but in the Arctic vessels of opportunities is difficult. Potential paces of refuge are being identified. Emergency owing Nome Medium vessels 50,000 DWT. Federal and states standards are very similar just different terms. Planning standard and drill in specific time frame. Research for oil detection and mapping tech, field testing of techniques, modeling of oil, involve stakeholders within situ burning, disbursements. Federal Arctic Standards development. Looking at statutes to update, last done when exxon valdez ran aground. Dr. Sarah DNR - National Petroleum Council Arctic Research Study report Arctic Potential realizing the promise of US arctic and oil and gas resources. Emphasis on prudent development, r&s operations and human and environment areas. Used local tech and NGO such as Pew Trust. Key findings-o&g are large and can contribute to meet future us and global and energy needs. Environment poses challenges. O&G has long history of successful operations. US offshore conventional can be develop using existing field proven technology. Challenge by operating conditions, need to secure public confidence. Recent technology and regulatory advancements to reduce potential and consequential spills. National security and economic benefits associated with increased US activity. Listed 5 tier environments and technology needed. Reports list prevention and controlled response. Recommendations by 32. Conduct research recommendations. Drilling season length and lease length US versus others. US 6-7 wells are needed for lease. Other countries just 1-2. Environmental stewardship in the report. On going collaborative work to validate tech for improved well control. Arctic Response Tech Joint industry Program underway since Regulators continue to evaluate spill tech. Arctic Executive Steering Committee recommendations-assess alignment across agencies and clarify process with Alaskan. Regulators compile regulatory requirements. Recommend Arctic Economic Council be engaged with Arctic Council. RECOMMEND READ! Sudie Hargis D17- Regulatory Solutions. Public confidence and public trust Arctic Strategy-Ensure safe, secure, and environmentally responsible maritime activity in Arctic. Improve awareness, modernize governance, broaden partnerships. D17 HDQ 2000 statewide, ANC & JNU sector, 24 field units, Air station in ADQ and Sitka, other assets Healy and NSC. Operations, planning, prevention and response. Engaging with industry and communities. Federal subsistence co-management groups. Food security and cultural security is key. Vessel traffic, infrastructure, subsistence hunter safety, food quality. Initiatives are: Polar code becomes in 2017, AWSC use best practices standards of care, PARS public ends August 18, Looking ahead continue to engage to have stakeholders involved. Q&A-State Arctic Council with Russia on Spill response planning. USCG has an agreement in place. Susan Bell-Lunch key note speaker: People of the Arctic. Economic development. Work needs to continue on all fronts. Well hone survival skills and community. Resilience national sovereign, intro of disease, etc. Abrupt-loss in population, language, and traditional lands. Kids were sent out for school. Importance of education is deeply important. Residents experience improvements from ED-local residents participate in the promise. Much land few people, centuries of TK. Described hub community size. TK and logistics is important. Described NSB and NWAB hubs. Arctic development and Inupiaq culture proactive to ensure residents involved in economic opportunity. Mine supports basic services in royalties to the Borough-education,

37 etc. Guaranteed payments for the life of the mine for Red Dog with AIDEA. 90% general funds to the Borough. Inherent sharing by Native corporation with 7J. Values of corporation reflects the mines operations. A subsistence group was created and works effectively. Graphite One is using public engagement and creating subsistence committee. Resource development is the CDQ. Hub communities Nome, Bethel, Unalaska. 65 communities in a share for fishing industry, 6 CDQ formed and elect board and policy for investments. Spoke on the success of the CDQ's. Create unique regs that require reinvestment. Public private relationship with university created EET. Process for engagement before permits, think creatively to bring benefit to the community, cultural respect. Build trust and 2 way comms. Long term view is important and critical and important. Canadians national strategy and weave the themes together. Maritime Infrastructure: Scott Pattison Port of Seattle-Arctic Port in Seattle. Went over the infrastructure and gateways to the pacific present Ports of Seattle and Tacoma operated independently. Forming an alliance with FMC approval. Northwest Sea Port Alliance. Base for Arctic Operations. Revenues will be split equally and capital will be used that best serves the region. No refueling facility at dock. Congratulated the port of Nome for moving forward for a Deep Draft Port. He was there 20 years ago and thinks its a great opportunity! Ken O'Hollaran Port of Port Angeles-went over the port. Industrial development districts. Rental properties i.e. airport industrial park. Marine trade boat repair and yachts manufacture 50m yachts. Forest product export and now expanded to tanker repair top side. Terminal 5 redevelopment options. Found tribal burial ground transferred to tribe. Terminal 7--former wood chip yard, 15 acre site. Local business impacts with port expansion, hotel, restaurant, maritime shops, launch services, provided lunches for 26 days made $30K. Great boost in the arm for economic opportunity. (he added a video of the drill rig brining business). Have bunkering facilities, LNG being constructed. Joy Baker-Develop of the port: Went over existing, completed and planned and great video of the Healy and Renda. (Joy did a great job on presenting, folks were engaged, my personal opinion!). USACE provided slides for her to incorporate into ours. Port of Anchorage: Went over facilities and JBER enjoys the use and is established as a strategic port. Valdez refines jet grade fuel to JBER. Private sector investment: Alaska basic industries, delta western, crowley. More tanks in support of DOD fuel. LNG project has looked at the port and acreage we could give them. Maritime Operation Strategic Consideration: Paul Fuhs, AKMX: Went over the existing or lack of most arctic ports had sheet piling. North Slope Port Authority was formed. Interim Executive Director. No black carbon vessels-where are you going to LNG ship fueling station (new business opportunity). AWSC formation. USCG recognizes these committees. Alternative planning criteria. 24 hours to respond within 24 hours. would require 18 tug boats to wait is $6M, USCG says APC. ship arrestor concept to operate as a huge break, slow a tanker by 50%. Best practices and work with the insurance carriers and adopt standards. Ships anchor system is one of the best to use. Dermit Loughnane, Tactical Maritime Solutions. What factors do I take into consideration to work in the Arctic. Limit to commercial operations, not government. Factor: remotenessbankers, repairs, charting-there is a surveyed route thru the Arctic every 50 yards(he was on the crew for a german company), crewing/reliefs. Regulator-more oversight by everyone and polar code implementation. Polar code requires operational manual, ice pilot, levels of training for

38 ships for senior and junior level B. Feasibility-draught, to little and often. Risk/ice volatility. Insurance not many underwriters; lift for your class ship-ice class ship less cargo room effects economics. Availability of ships other than purpose built, employment of ships off season suitability, transshipment. 4/10 is what you need to worry about running in multi year ice. Most of Canadian Arctic is multi season. (He was the best man in Duke Snider's wedding-small world). 6/17 Maritime Operations Current Capability and future needs: Bruce went over their operations with Arctic Operations working with Shell and delivering fuel. Explained fuel delivery process. Ice free season. Follow the ice up to the Arctic, choke point of ice is at Barrow. They are a great community partner by sponsoring youth programs! Foss Marine, first in the Arctic to Red Dog Mine and last out. 90 to 100 day season. Operate 25 vessels in the Arctic, 4 out of 25 vessels are ice strengthened or iced-class. Tugs and barges are winterized. Self-sufficient and self reliant. July to October is their season. Investment in new vessels, building 3 arctic class tugs in south Korea. No long term contracts to go into high ice class. Shallow draft assist tugs. 5 to 7' draft. Been in the arctic since 1950's. Strategic planning imperative due to lack of infrastructure. James Harrap, Shell Alaska Venture- Themes and challenges are consistently the same. Good forum last couple days. Drilled in Alaska, Greenland license awarded, Norway license awarded, Russia producing LNG since 2009 and expansion study happening, Most studies in the world. The ecosystem. $100M on arctic science and research spent. O&G undiscovered how we can calculate that. Operating in Alaska in 50 years. Cook Inlet. 1st royalty payer in the state of Alaska. 1980's drilled wells in Bering and Beaufort Seas, drilled 4 of 5 wells in Chukchi Sea. Burger is the best they've explored and concentrating on plans: Valuable lessons learned since 2012 season. Key actions implemented to drive continued improvement and efficiencies renewed focus on contractor management. Strengthen Arctic organization, upgraded assets. 2 drill rigs Nobel and Polar Pioneer. Support vessels similar to Anchor handlers, ice management, oil spill response, supply and towing. Assets: USCG certificate of inspection. No ice breaking support in the US, Shell has to use Fennica and Nordica. Aiviq Ross Chouest, Tor Viking, Ocean wind and wave, explorer, Sisuaq, guardsman/klamath, Nanuq, Support tanker and OSR tanker to be announced. Kotzebue sound is the Arctic containment system: Corbin Foss, Sea Prince/ Barbara Foss, Lauren Foss, Unalaq, Diania G. Unalaska will be used to resupply as its a deep draft port. Logistics terminal operations wainwright. Oil spill ops 24 bed space capability and supply and law down space. Point barrow aviation logistics crew change 600 people rotation base, 3 helos, 1 SAR helo, 2 hangers, 1 PSO, 127 bed space, personnel 75 camp, 48 bed space contingency Upkis Nest 1. Work with the hunting community to not disturb subsistence activities. Use ANC for passenger processing terminal charters to Dutch Harbor, wainwright and Kotzebue. 2 rigs 28 vessels, 7 aircraft, 7 shore bases and 2 drill wells. Oil spill response: subsea containment system, OSR vessel with skimming vessels, arctic tanker, vessels of opportunity, booms, skimmers, and pumps. Near shore recovery oil spill response barge, skimming vessels. Mark Smith: "Focus is fuel for the Arctic." 1934 started company supply BIA with transportation services for school system and delivered fuel to heat schools. "US Arctic most sophisticated port is Port of Nome!" (Thank you! Great support!) Concentrated only on the Arctic. Capabilities seen the best at Nome. Industry and professional make the best of bad situations. Showed rusted tanks from wind blown sea waves. The ability to maintain tank farms is challenging for rural

39 communities. Future needs: depend on budget most don't have $ to develop infrastructure, direct delivery on the beach. If no harbor most operators float hose in to connect. The US government, really spend a good portion NOAA budget providing mapping that is required. "NOAA and USCG are taking summer cruise." (I disagree with this statement, my personal opinion). "Mapping a BS PARS traffic lane that we don't care about. The issue is on the beach." (Again I disagree with this statement, City has provided public comment with Port Commission members understanding the mariner industry challenges). "Hard part around the edges." He said and he's correct, "Available data on shores are limited." His taking points were: the Benefit of shallow water charting to enhance safety, time savings, more vessel options, labor saving and overall lower risks. Have to wait for tide cycle. Shell: Takes 6 days from Dutch to OTZ. Joy will meet with him to promote the Port of Nome. Capital Investment: Investment in the Arctic a big challenge. Corresponding investment. Domestic and foreign capital be leveraged for the people in the Arctic. Jake Adams NSB-200M to 500K barrels a day, 1/4 rate since $400M from property tax on oil and gas assets in the borough. Mentioned the AWSC that they wanted the creation when in 2012 the AMMA was working with D17 for the creation of it. "Save the Whales...For Dinner" Want OCS revenue sharing, call for permanent USCG presence, year around ocean and are response capabilities in the Arctic. Lack of comms, ports and harbors, roads, housing, etc. Same priorities as City/Kawerak. Mead Treadwell, President of PT Capital. PT is a private equity bank. Emerging market with macro and financing opportunities. Feed, fuel, provisions, protects, connect and inspires the world. Military on top of the world is important, a direct line of a missile from Iran over the North Pole to America. Investment thesis: AK $100B of investment in the next decade. Pend up demand and significant appetite for private equity. 13% and 30% of the worlds undiscovered O&G. $1T of mineral resources. NSR traffic increase of 48% Critical geopolitical due to global and Asia demand and manufacturing competencies (Singapore, Korea, India, Japan). Between 5-15% of china trade value about billion us will pass thru the arctic. Arctic economies grow over $5B by Growth driven by demand for resources, opening of sea routes and trade. Work on a maritime regime. Ports infrastructure is essential to save shipping. Need for ice breakers to help move commerce along. Development of natural resources in Arctic. Low oil prices NS E&P companies can deduct operation expenditures, capital expenditures, and transportation costs to arrive at the production tax value of oil. Current state of oil market create an opportunity to invest in Alaska. Man alaskan based companies have some level of dependence on resource development. Industry spending is $23.4B onns over next 3 years. Companies are experience growth with development of the Arctic. Exxon construction at point thompson 10bdp of natural gas condensate in ConocoPhillips largest oil producer. PB 2 new rigs in 2 years. Shell purchased 137 offshore lease in Beaufort Sea. To date $6B on preparing for drilling in Chukchi. LNG $45B cost to build a 800 mile gas pipeline ability to make up to 20MMT a year of LNG processing 2.5 billion cubic feet a day of gas. Gas treatment plant Mead Hugh office AIDEA Mike Catsi-Revolving fund $1.4b in assets. S&P rating AA+. Long term asset financing. Revolving fund, enterprise account and economic development account. SETS energy infrastructure Development. Arctic Infrastructure Fund Infrastructure development. Not capitalized empty fund. AIDEA comes into the stage of concept, development, construction, operation. They come in at the private equity and loan construction phase. Debt equity. Construction improvement rehab or expansion of a facility to aid in development or meet

40 emergency needs. 33% direct financing or $20M in loan/bond guarantees, 40 year maximum term. 52 miles investment of $265M to be repaid over 50 years with an expected ROI of 6.5%. Take equity in project and leverage private dollars. 334 man camp in Deadhorse. Northrim $8,575 (30%) and AIDEA $20,000,000 (70%). Bulk fuel storage in Nome. Future arctic projects: nrd, ports and harbor, SAR and Spill response. Transportation and comms, federal facilities ie USCG station. "There is money available". How to strengthen the relationship between Alaska and Seattle area was going to be discussed for those who wanted to attend the lunch meeting. Peter closed on comments. PacificMaritime Magazine is for those who are Operators of maritime in the pan pacific. At noon we met with Captain Robert Loken (Retired Navy) with USDOT MARAD with Joy and Angela Rodell. He provided us information on TIFIA, Build America Transportation Investment Center (BATIC) and the manual for Port Development (which I've already read). Helen Bhrol with CMTS had recommended we meet with MARAD when we were in DC. He was an amazing resource. We'll follow up via and request his technical assistance from his staff here in Seattle. We need to send an invite to him to visit Nome. He's only been to Anchorage. We asked for assistance on the being considered for a national strategic port (ANC, Guam and Tacoma is one). He said we should look at being considered as an "Alternate" such as Evert and Olympia. I think we need to be considered as National with Russia as our neighbor and with Anchorage over 1000 miles away! We will request MARAD assistance to see if we can be considered with the National Port Readiness Network (NPRN). Captain Loken mentioned facilitation with TransComm which facilitates ideas and best practices. See TransComm conference web site. Oh: this morning protestors showed up at the hotel and tried to run into the conference room. Security asked that they move out of the hotel onto the sidewalk (public areas). Seattle police were called in to watch activities. This is the first time I've ever been protested against as an Alaska Native, Alaskan, huntress and respect sustainable resource development. Paul Fuhs escorted me to witness the protest, thank God is over 6' tall. Never felt in danger but I could see worst activities in Alaska with lack of public safety and with the USCG present stretched thin. We need to request his assistance for funding partnership, DOT (MARAD) NOAA, USCG, National Security (FBI), and other federal agencies (NSF) will be using the port of Nome "if you build it we will use it". Need to work with congressional delegation on cost benefit analysis to meet US and Alaska Arctic Policy for an Arctic Deep Draft Port. We are interested in formal port talk (PT) consultation with MARAD and need to request this to the Captain. We let him know that Western Alaska would like the Marine Highway expanded to meet our needs. I let him know on behalf of Kawerak we made the request to DOTPF and it didn't move very far because ADOT doesn't have enough working ferries to expand. I will follow up with Kawerak and MARAD's federal register announcement from 2014.

41 Billing Period PORT MEMO TO: FROM: CC: JOSIE BAHNKE, CITY MANAGER LUCAS STOTTS, HARBORMASTER JULIE LIEW, FINANCE; TOM MORAN, CITY CLERK; JOY BAKER, PORT DIRECTOR DATE: 07/01/15 SUBJECT: PORT & HARBOR LEASES - CURRENT STATUS COMMENTS: The information below reflects revenues for leased property at the Port of Nome. COMPANY: DESCRIP: SQ FT: RATE: TERM: Expires: ANNUAL VALUE: Amount: Crowley Marine Services* Blk 1/Lot 2&3 IP 86, /yr (approx.) 5/1/2011 4/30/2021 $21, A $ 21, AML (Northland Services, Inc.) NJUS-Project Blk 1/Lot 4 Blk 2/Lot 1 Office Trailer 71,043 6,000 portion.0182/wk 9/1/2012 8/31/2017 $73, Qtrly $ 18, Unit $500/mo 4/1/2011 3/31/2016 $6, A $ 6, SEAKERS, INC. Blk 3, Lot 1A 9, /wk 7/1/2012 6/30/2017 $15, Qtrly $ 3, Alaska Logistics Blk 1, Lot 5 33, /wk 8/1/2012 7/30/2017 $40, Qtrly $ 10, PHOENIX MARINE Trinity Sails & Repair SBH-Lot Tract C, Prtn SBH-Lot Tract B, Prtn 19, /wk 10/1/2014 9/30/2015 $32, Qtrly $ 8, , /wk 7/1/2015 9/30/2020 $9, Qtrly $ 2, *Crowley: Fairmarket value reviewed every 5 years - payments adjusted to 10% of that value (current value through 4/30/16) AML (was Northland): Property disposed of through City Ordinance in Sep 2007 Seakers: Property disposed of through City Ordinance in June 2012 Alaska Logistics: Property disposed of through City Ordinance in August 2012 Phoenix Marine in second and final renewal term in contract Chuksea Seafoods lease terminated 5/27/15 - vacated 06/10/15. /jlb

42 Memo To: Nome Port Commission From: Joy L. Baker Port Director/Projects CC: Josie Bahnke City Manager Mayor & Nome Common Council Date: 6/18/2015 Re: Port Projects Status Report June 2015 The following provides a status update for the existing 2015 Port & Harbor Projects information in italics represents no status change from last report. Causeway: Deep Draft Arctic Port Study: The USACE is getting close to meeting the Agency Decision Milestone after completing numerous internal and external reviews of the Tentatively Selected Plan. All agency and public comments have been reviewed, with responses to be included in the final report, currently anticipated to be Dec Work continues on the Value Engineering information requested from PND for ROM costs and 15% schematic design for a sheet pile dock in place of the USACE proposed caisson dock as a cost-saving effort. Several other Local Service Facility (LSF) items are being considered within the VE efforts, as all of these costs would be borne by the City. This value engineering work will be forwarded to the USACE and shared with the Port Commission and Council upon receipt, anticipated in late June. Middle Dock: Contractor received the bulk of their project materials on the first barge sailing, and the last of their project equipment by June 7 th, allowing them to get in place to break ground by June 11 th. This consisted of setting up the project work site, laydown areas, material storage, beach access and the scales site. Coordination with users and scheduled traffic is ongoing through the Harbormaster & staff, and a public notice was released on June 15 th. Weekly project meetings will continue the project to address pending or unanticipated issues. Space is tight on the Causeway and road

43 traffic is expected to be congested during multiple vessel calls. Daily field coordination will continue throughout the season as needed. USACE Outer Harbor Maintenance Dredging: The contractor for the USACE has mobilized for the annual maintenance dredging, beginning work on June 16 th. Through the reprogramming funds authorized over the winter, work will start within the harbor entrance channel to complete this area prior to the expiration of the fish window on June 30 th. Upon completion of this initial work, the contractor has been directed to move to the outer harbor to address the shoaled area nearest to the dock approaches as weather permits. If poor conditions exist, the dredge will shift to the east sediment trap or channel transition to continue working. Inner Harbor: Snake River Floats Phase II: The City and NSEDC have agreed to share costs to obtain a conceptual plan from PND to incorporate travel lift infrastructure into the proposed development along Snake River. Deliverables are a Rough Order of Magnitude (ROM) cost estimate with several design concepts for $10K, to determine the feasibility/affordability of this potential facility component. Barge Ramp Repair: This project has been in the assessment/development phase for several seasons, but continued demand in its purpose as a launch ramp has made it difficult to pull out of service for the time needed to do the work. Efforts will proceed during the 2015 season to identify a window in which to remove concrete planks and pour grout into the voids in order to stabilize the sinking belly of the ramp. Port Industrial Pad: Port Pad Development: The City continues to see out new options for clean fill to develop the new Thornbush Subdivision in an effort to increase current lay down acreage for expansion. Port Road Improvements: Discussions between staff and the ADOT planning team have resumed in an effort to finalize the scope of work with consideration to the City priorities for this project. Project cooperation agreements are being considered and design work will continue through the 2015 season. (The May Project Report indicated erroneously that this project would be constructed in It is actually the modifications to the Jafet Rd. intersections that will occur in 2015.) External Facilities: Seawall Erosion Repair: This project is still in design, with coordination efforts underway to work with ADOT on the storm runoff culverts that drain through the seawall. Management and staff are still hopeful that construction funding MAY exist with potential remaining funds from the Middle Dock project. We anticipate this project will likely bid in early fall 2015, with a winter construction schedule to capitalize on known quantities of armor salvaged from the Middle Dock Project (as well as available funding). 6/18/2015 Page 2 Port Projects Status Report

44 Cape Nome: Multiple inquiries have been submitted to the Alaska DHS office for updates on both issues below. DHS has replied each time that no new information is available, but we continue to push for answers. PND 95% For Review design drawings, report and cost estimate has been submitted to DHS/FEMA. Management/staff are hopeful they will meet with FEMA approval to effectively correct material quantities and construction costs in the existing project worksheet for the storm damage repair. Once verified, the project worksheet will be amended with the correct information, which is expected to trigger a grant amendment to provide the adequate funding level necessary to complete the repairs. Construction is still hopeful for the 2015 ice-free season. Additionally, the City has requested a status report on the 2 nd appeal to FEMA Headquarters on eligibility of $170,792 in emergency repair work performed by Knik Construction in May The final legal justification was submitted to the DHS office in early January, which means their 90 day window closes this month. We are still confident these costs will be approved for reimbursement, but no update has been received. Additional information on any of these projects is available upon request. 6/18/2015 Page 3 Port Projects Status Report

45 Memo To: Nome Port Commission From: Joy L. Baker Port Director/Projects CC: Josie Bahnke City Manager Mayor & Nome Common Council Date: 7/13/2015 Re: Middle Dock Project - Brief Progress Summary In an effort to keep you up to date on construction progress, I ve provided a few photos showing where the project stands as of July 11, Contractor anticipates beginning to drive sheetpile today, July 13 th. Mid Dock Project Site showing fill pad placement 7/11/2015

46 Crane driving first sheetpile template pile 7/11/2015 Mid Dock Construction showing silt curtain 7/11/2015 7/13/2015 Page 2 Mid Dock Progress Report

47 Loader/bulldozer spreading granular fill hauled in by sub 7/11/2015 Excavator trenching out tail walls & stockpiling spoils nearby 7/11/2015 7/13/2015 Page 3 Mid Dock Progress Report

48 Snake River Boat Lift ROM Concept Cost Estimate Item Amount 1 MOB / DEMOB AND CLEANUP $ 700,000 2 Dredge, fill, slope protection $ 690,500 3 Boat Lift Foundation WITH OPEN CELL TM $ 2,294,600 MATERIAL AND LABOR $ 3,685,100 FILL MITIGATION ESTIMATE $ 25,000 BIDDING ASSISTANCE, SUBMITTAL REVIEW, FABRICATION INSPECTION 2 $ 80,000 SURVEY, ENGINEERING, GEOTECHNICAL, PERMITTING ADDITIONAL 3 $ 100,000 INSURANCE, O&P, SITE CONSTRUCTION MATERIALS $ 140,000 CONSTRUCTION TOTAL $ 4,030,100 Construction Contingency $ 363,000 CONSTRUCTION TOTAL w/ CONTINGENCY = $ 4,393,100 Notes: 1. Based on Concept Snake River Boat Lift drawings dated July 2, 2015 and similar structures 2. Construction administration costs are approximate and will depend on construction duration. 3. Survey, Engineering, Geotechnical, Permitting Additional reflects estimate based on development of OPEN CELL design and includes $10,000 for two concept designs ROM Rough Order of Magnitude Page 1 of Snake River Boat Lift

49 Snake River Boat Lift ROM Concept Cost Estimate Item Amount 1 MOB / DEMOB AND CLEANUP $ 1,000,000 2 Dredge, fill, slope protection $ 994,000 3 Boat Lift Foundation with in-water piers $ 1,851,000 MATERIAL AND LABOR $ 3,845,000 BIDDING ASSISTANCE, SUBMITTAL REVIEW, FABRICATION INSPECTION 2 $ 80,000 SURVEY, ENGINEERING, GEOTECHNICAL, PERMITTING ADDITIONAL 3 $ 100,000 INSURANCE, O&P, SITE CONSTRUCTION MATERIALS $ 140,000 CONSTRUCTION TOTAL $ 4,165,000 Construction Contingency $ 375,000 CONSTRUCTION TOTAL w/ CONTINGENCY = $ 4,540,000 Notes: 1. Based on Concept Snake River Boat Lift drawings dated July 2, 2015 and similar structures 2. Construction administration costs are approximate and will depend on construction duration. 3. Survey, Engineering, Geotechnical, Permitting Additional reflects estimate based on development of in-water pier design and includes $10,000 for two concept designs ROM Rough Order of Magnitude Page 1 of Snake River Boat Lift